Google unveils Android Pay in fresh challenge to Apple

Google on Thursday unveiled its pay-with-a-phone system for Android devices, ramping up its challenge to Apple in mobile payments.

Android Pay, unveiled at the Google developers conference in San Francisco, brings together mobile carriers, payment networks, banks and retailers to allow smartphone users to use their handsets instead of payment cards.

Google engineering vice president Dave Burke said Android Pay would work in more than 700,000 US retail outlets that accept contactless payments.

"We are at the start of an exciting journey, we are working closely with payment networks, banks and developers," he said.

Similar to the Apple Pay system unveiled last year, Android Pay will allow consumers to store credit card information on their handsets along with loyalty cards and other data.

For extra security, Android Pay will generate a one-time "token" or virtual account number so the actual credit card data is not revealed in a transaction.

"Users can simply and safely use their Android phone to pay in stores where you see an Android Pay logo," Burke said.

"We are focused on simplicity, security and choice."

Google said in February it was teaming up with the mobile phone payment firm Softcard to ramp up its efforts in the emerging sector.

This will allow Google Wallet to become a pre-installed "tap to pay" app on Android smartphones.

No date was announced for the roll-out of Android Pay but the Google statement said it would be "available on Google Play for download soon."

Apple's iOS and Android rule the global smartphone market, and the companies are eager to be at the potentially profitable heart of shopping or other financial transactions as consumers go increasingly mobile.

'M' for major?

Google announced that enhancements being built into a new "Android M" version of the mobile operating system include support for fingerprint-checking, which would match the feature built into Apple's latest iPhones and iPads for security.

"The things announced today are good, but the 'M' doesn't stand for 'Major,'" Current Analysis research director Avi Greengart told AFP at the gathering.

"Some of the improvements are Google playing catchup in payments and fingerprint recognition."

Apple Pay also works with Apple Watch, essentially allowing users to pay with the waves of a wrist. The Android team gave no indication if their new Pay feature will extend to smartwatches.

Google did show off a slew of upgrades for Android-powered smartwatches, such as gesture controls and being able to distinguish between actions such as push ups and golf club swings.

"We love watches," Android Wear director David Singleton said during an on-stage presentation.

"They have always been this incredible mix of beauty and technology."

He said Google is partnering with an array of hardware makers to add to the current line-up of seven different kinds of Android smartwatches.

There are more than 4,000 applications tailored for Android-powered smartwatches.

The Apple Watch is fueling the emerging smartwatch market and is expected to be the top seller in the segment for next few years, according to a market research report released early in May.

Fun, functional or hip applications made by the kinds of software wizards packed into the Google developers conference here are seen as vital to the popularity of smartwatches and smartphones.

source: www.abs-cbnnews.com

Google aiming to go straight into car with next Android

SAN FRANCISCO/DETROIT - Google Inc is laying the groundwork for a version of Android that would be built directly into cars, sources said, allowing drivers to enjoy all the benefits of the Internet without even plugging in their smartphones.

The move is a major step up from Google's current Android Auto software, which comes with the latest version of its smartphone operating system and requires a phone to be plugged into a compatible car with a built-in screen to access streaming music, maps and other apps.

Google, however, has never provided details or a timeframe for its long-term plan to put Android Auto directly into cars. The company now plans to do so when it rolls out the next version of its operating system, dubbed Android M, expected in a year or so, two people with knowledge of the matter said.

The sources declined to be identified because they were not authorized to discuss the plans publicly.

"It provides a much stronger foothold for Google to really be part of the vehicle rather than being an add-on," said Thilo Koslowski, vice president and Automotive Practice Leader of industry research firm Gartner, who noted that he was unaware of Google's latest plans in this area.

If successful, Android would become the standard system powering a car's entertainment and navigation features, solidifying Google's position in a new market where it is competing with arch-rival Apple Inc. Google could also potentially access the valuable trove of data collected by a vehicle.

Direct integration into cars ensures that drivers will use Google's services every time they turn on the ignition, without having to plug in the phone. It could allow Google to make more use of a car's camera, sensors, fuel gauge, and Internet connections that come with some newer car models.

Analysts said Google's plan could face various technical and business challenges, including convincing automakers to integrate its services so tightly into their vehicles.

Google declined to comment.

Technology companies are racing to design appliances, wristwatches and other gadgets that connect to the Internet. Automobiles are a particularly attractive prospect because Americans spend nearly 50 minutes per day on average on their commute, according to U.S. Census data.

Apple unveiled its CarPlay software in March and Google has signed on dozens of companies, including Hyundai, General Motors Co and Nissan Motor Co, for its Open Automotive Alliance and its Android Auto product.

Android Auto and CarPlay both currently "project" their smartphone apps onto the car's screen. Many of the first compatible cars with this smartphone plug-in functionality are expected to be on display at the upcoming Consumer Electronics Show in Las Vegas next month and to go on sale in 2015.

By building Android into a car, Google's services would not be at risk of switching off when a smartphone battery runs out of power, for example.

"With embedded it's always on, always there," said one of the sources, referring to the built-in version of Android Auto. "You don't have to depend on your phone being there and on."

Google's software could potentially connect to other car components, allowing, for example, a built-in navigation system like Google Maps to detect when fuel is low and provide directions to the nearest gas stations.

By tapping into the car's components, Google could also gain valuable information to feed its data-hungry advertising business model. "You can get access to GPS location, where you stop, where you travel everyday, your speed, your fuel level, where you stop for gas," one of the sources said.

But the source noted that Android would need major improvements in performance and stability for carmakers to adopt it. In particular, Android Auto would need to power-up instantly when the driver turns the car on, instead of having to wait more than 30 seconds, as happens with many smartphones.

Automakers might also be wary of giving Google access to in-car components that could raise safety and liability concerns, and be reluctant to give Google such a prime spot in their vehicles.

"Automakers want to keep their brand appeal and keep their differentiation," said Mark Boyadjis, an analyst with industry research firm IHS Automotive. "Automakers don't want to have a state of the industry where you get in any vehicle and it's just the same experience wherever you go."

source: www.abs-cbnnews.com